AcquisitionsAug 6, 2026, 05:19 PM
Brady Completes $1.4B Acquisition of Honeywell PSS Business
AI Summary
Brady Corporation announced the completion of its $1.4 billion all-cash acquisition of Honeywell Technologies' Productivity Solutions and Services (PSS) business. This transformational acquisition was funded through cash on hand, borrowings under existing credit facilities, and a private placement of $800 million in senior notes. The company expects the PSS business, which generated $1.1 billion in sales in 2025, to be immediately accretive to Adjusted Diluted EPS by approximately $0.80 within the first year and generate $25 million in annual run-rate cost synergies.
Key Highlights
- Acquired Honeywell's Productivity Solutions and Services (PSS) business for $1.4 billion.
- Transaction funded with cash on hand, $800 million from existing credit, and $800 million from new notes.
- Issued $250 million 5.43% Series A Notes due 2031, $300 million 5.65% Series B Notes due 2033, and $250 million 5.90% Series C Notes due 2036.
- PSS business generated sales of approximately $1.1 billion in 2025.
- Expected to contribute approximately $0.80 of incremental Adjusted Diluted EPS within the first year.
- Anticipates at least $25 million in annual run-rate cost synergies within three years.
- Net debt-to-EBITDA expected to be around 2.5x, deleveraging to below 2.0x within two years.
Price Impact
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